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What are some examples of risk-free investments?

Curious about risk-free investment

What are some examples of risk-free investments?

In India, some examples of riskfree investments include:

1. Savings account: This is a type of deposit account offered by banks that provides lowrisk returns. The principal amount invested in a savings account is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. 5 lakhs per depositor per bank.

2. Fixed deposits (FDs): FDs are lowrisk investments that offer a fixed rate of interest and a guaranteed return at the end of the investment tenure. The principal amount invested in an FD is also insured by DICGC up to Rs. 5 lakhs per depositor per bank.

3. Public Provident Fund (PPF): PPF is a longterm savings scheme offered by the government that provides tax benefits and a fixed rate of return. The investment is also backed by the government and is considered a riskfree investment option.

4. National Savings Certificate (NSC): NSC is a fixedincome investment scheme offered by the government that provides a guaranteed return. The investment is also backed by the government and is considered a riskfree investment option.

5. Treasury bills: Treasury bills are shortterm debt instruments issued by the government that provide a fixed return to investors. They are considered to be riskfree because they are backed by the government.

It is important to note that while these investments are considered relatively lowrisk, they still carry some level of risk and the returns may vary. It is always advisable to do your own research and consult a financial advisor before investing.

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